Sandridge Energy, Inc. · NYSE:SD
Sandridge Energy — Q1 2019 Earnings Presentation
19 slides from Sandridge Energy's earnings presentation, May 9, 2019
Slide 1: First Quarter 2019 Earnings Presentation
ZWwAFY SANDRIDGE energy First Quarter 2019 Earnings Presentation May 9, 2019 ~~ __
Slide 2: Forward-looking statements
This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are neither historical facts nor assurances of future performance
Slide 3: SandRidge Energy
Ay SandRidge Energy We are an independent oil and natural gas exploration and production company headquartered in Oklahoma City, OK with principal focus on the acquisition, exploration and development of hydrocarbon resources in the United States. Highlights as of May 2, 2019 Stock Price $8.09 Marke
Slide 4: SandRidge Strategy
Ay SandRidge Strategy Our business strategy is to acquire, explore for, and develop hydrocarbon resources in the United States; focus on financial discipline, flexibility, and value creation; and ensure health, safety, and environmental excellence while demonstrating the Company's core values. Attra
Slide 5: Financial Highlights
aa Financial Highlights Discipline and Flexibility First Quarter Results First Quarter * Adjusted G&A decreased 17% year-over-year Adjusted EBITDA’ $41 Million " © Yearoveny + LOE decreased 3% year-over-year Capital Expenditures $71 Million + Reaffirming guidance Adjusted G&A2 $9 Million LOE $23 Mil
Slide 6: North Park Basin: Optimizing Well Spacing
mY North Park Basin Optimizing Well Spacing to Minimize Capital Costs & Maximize EUR and Value Tested - 23 Wells Per Section Equivalent Pattern Six Peters wells in Western spacing test Microseismic and tracers suggest spacing overlap Fractures taller / narrower than modeled Confirmed anticipated wel
Slide 7: North Park Basin: Western Spacing Test Results
mY North Park Basin Western Spacing Test Results Provide Insights to Future Development Plans WELL PRODUCTION Western Spacing Test * Evaluated potential for 23 wells per section spacing * Drilled six wells configured in three layers to capture reserves from all four benches Oil Rate (Bopd) + “Wine r
Slide 8: North Park Basin: Advancing Core Development and Resource Delineation
mY North Park Basin Advancing Core Development and Resource Delineation First Quarter * Drilled four wells with one rig - Two Surprise Unit southern delineation wells - Two Ray Ranch wells in core area * Eight wells to sales * Net production of 275 MBo (3.1 MBopd) Remaining 2019 Activity * Northern
Slide 9: North Park Basin: Optimizing Drilling Costs and Completion Efficiencies
NY North Park Basin Optimizing Drilling Costs and Completion Efficiencies DRILLING COST / FOOT FRAC COST / STAGE $200 $80,000 17% - 24% $60,000 $65,739 CEE $145 — $127 $54,788 $100 $40,000 $20,000 $0 $0 2017 2018 aig 2017 2018 a‘ + Lowered cost per foot by $35 24%) + Lowered frac cost per stage by $
Slide 10: NPB Production Outlook
mN NPB Production Outlook Recent Completions Provide Significant Increase to Second Quarter Net Oil Production 0.0 NET DAILY OIL PRODUCTION Qi'18 Q2'18 Q3'18 04 '18 Qi'19 Note: Future production is estimated, actuals may differ. Q2'19E SandRidge Energy, Inc. NYSE: SD
Slide 11: Mid-Continent First Quarter Activity
NY Mid-Continent First Quarter Activity NW STACK * Net production of 236 MBoe (2.6 MBoepd, 45% oil) - 29% quarter-over-quarter increase * Drilled eight wells with two rigs * Seven wells to sales with an average per well 30-Day IP of 576 Boepd (76% oil) * Drilling final two wells under the Drilling P
Slide 12: NW STACK First Quarter Well Results
=~ NW STACK First Quarter Well Results Bromlow 1-34H (SRL) 674 Boepd (72% oil) Campbell 2-26H23H (XRL) 744 Boepd (80% oil) Cotter 1-11H (SRL) 545 Boepd (74% oil) r- WOODWARD® . Drake 1-2H (SRL) 398 Boepd (63% oil) Hardin 1-30H (SRL) 719 Boepd (78% oil) Medill 2-27H (SRL) 471 Boepd (79% oil) Medill 3
Slide 13: 2019 Development Plan
m~\ 2019 Development Plan Reaffirming All Guidance Metrics Capital Expenditures Production Expenses Total of $160 - $180MM 11.4- 12.0 MMBoe of full year production + $89 -$94MM of LOE + $115- 125MM of D&C Capex * 3.7 -3.9 MMBbls of oil + $34 -$37MM of Adjusted G&A! + $45 - $55MM of other E&P * 2.5-2
Slide 14: Appendix
FY SANDRIDGE energy APPENDIX ~~ __
Slide 15: 2019 Guidance
Ay 2019 Guidance CAPEX GUIDANCE $MM PRICE DIFFERENTIALS TO NYMEX Drilling & Completion $115 - $125 Oil (per Bbl) ($4.30) Other E&P $45 - $55 NGLs (realized % of WTI) 37% Total Capital Expenditures $160 - $180 Gas (per MMBtu) ($1.30) (excl. A&D and P&A) % OF NET REVENUE TOTAL COMPANY PRODUCTION Sever
Slide 16: NPB Performance vs Type Curve
7. NPB Performance vs Type Curve Average Oil Rate (Bopd) 1,000 100 10 PRODUCTION? VS XRL TYPE CURVE ; Length 40 Peak Oil Rate (Bopd) Peak Gas Rate (Mcfpd) Oil b-factor 0 Gas b-factor = Initial Decline- Oil 7S 77 0 g Initial Decline- Gas = Oil EUR (MBo) "5 Gas EUR (MMcf) 10 Total D&C Costs IRR™ Pv-10
Slide 17: Year End 2018 Reserves and PV-10
my Year End 2018 Reserves and PV-10 (1) (2) OIL N GAS SMOG/PV-102 PROVED RESERVES MBBLS MBBLS Nive MBOE! a Mid-Continent 13,283 a | North Park Basin 5,410 a le Total Developed 18,693 a Mid-Continent 6,823 | w North Park Basin 38,504 a Eig Total Undeveloped 45,326 Proved Reserves as of Dec 31, 2018 @
Slide 18: Reconciliation Tables
my Reconciliation Tables Reconciliation of G&A to Adjusted G&A The Company defines adjusted G&A as general and administrative expense adjusted for certain non-cash stock-based compensation and other non-recurring items, ifany, as shown in the following table. Three Months Ended Three Months Ended Ma
Slide 19: Reconciliation Tables
NY Reconciliation Tables Reconciliation of Net Loss to EBITDA and Adjusted EBITDA The Company defines EBITDA as net income (loss) before income tax benefit, interest expense, depreciation and amortization - other and depreciation and depletion - oil and natural gas. Adjusted EBITDA, as presented her